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Boston Pizza Royalties Income Fund and Boston Pizza International Are Pleased to Announce Partial Dismissal of Counterclaim

July 28, 2003

For Immediate Release                                                                           Toronto Stock Exchange: BPF.UN


VANCOUVER, BC, July 28, 2003 – Boston Pizza International Inc. (“BPI”) and Boston Pizza Royalties Income Fund (TSX:  BPF.UN) (the “Fund”) are pleased to announce that the Federal Court of Canada, on an application for summary judgement brought by BPI and Boston Pizza Royalties Limited Partnership (the “Limited Partnership”), dismissed portions of a counterclaim by Boston Market Canada Company and Global Restaurant Operations of Ireland Limited (“The Boston Market Group”), seeking to expunge the registrations of the Boston Pizza trademarks. 

As previously announced, BPI and the Limited Partnership have commenced proceedings against The Boston Market Group and some of its related entities (including McDonald’s Restaurants of Canada Limited) for trademark infringement.   In response, the Boston Market Group filed a counterclaim challenging the validity of the registered trademark “Boston Pizza” and other related trademarks, which are indirectly owned by the Fund through the Limited Partnership and licensed to BPI.  BPI and the Limited Partnership brought an application for the summary dismissal of the Boston Market Group’s counterclaim so that this counterclaim would not procede to trial.  The Federal Court dismissed the counterclaim as it relates to registered trademarks BP & Design, BP’s Lounge and BP’s Bistro.  The Court did not dismiss the counterclaim regarding three other trademarks, including “Boston Pizza”, primarily on the basis that the counterclaim raises issues that should not be resolved on a summary basis.  BPI and the Limited Partnership are in the process of setting a date for the trial of this matter, which is expected to commence in 2005. BPI’s management remains confident that the counterclaim brought by the Boston Market Group will not succeed.

BPI and the Limited Partnership, owner of the Boston Pizza trademarks, intend to continue to oppose the Boston Market Group and its related entities’ use of “Boston Market” as a trademark in Canada, and intend to prosecute all elements of this action vigorously.

The Fund is a limited purpose, open-ended trust established under the laws of British Columbia to acquire indirectly certain trademarks and trade names used by BPI in its Boston Pizza restaurants in Canada.  The trademarks are licensed by the Limited Partnership to BPI for 99 years, for which BPI pays the Fund 4% of franchise revenues from its 162 Boston Pizza restaurants in Canada as at November 1, 2002. 

About Boston Pizza International Inc.

Boston Pizza International operates the Boston Pizza franchise system, developing new Boston Pizza restaurants in Canada, and has emerged as one of Canada’s leading restaurant companies.  The organization continues to grow based on its “Three Pillars of Success”: a commitment to franchisee profitability, a commitment to the growth and development of the Boston Pizza brand, and a commitment to the constant improvement of the guest experience.  As of today, there are 168 Boston Pizza restaurants operating throughout Canada.

The trustees of the Fund have approved the contents of this press release.

Robert Groom
Director, Investor Relations
Tel: 604-270-1108


Boston Pizza Royalties Income Fund
Jordan Holm - Vice President of Investor Relations
Tel: 604-303-6083

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